ITAT Delhi

Penalty cannot be levied on ground which was not raised

Sh. B.R.Sharma Vs ITO (ITAT Delhi)

In this case assessee was asked to explain penalty on one count, whereas Penalty has been levied on other count. This itself called for quashing of penalty order passed by AO for all years under consideration. Therefore, penalty order was quashed and set aside....

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No addition U/s. 68 for Cash amount explained by assessee as derived from sale of agricultural produce

Shri Naresh Kumar Vs The Income Tax Officer (ITAT Delhi)

Where assessee had explained source of the cash deposit in the bank account by producing copies of the bills of sale of agricultural produce, which supported the explanation of assessee that assessee had received cash out of sale of agriculture produce, no addition under section 68 was warranted....

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Valuation of shares should be based on various factors and not merely on financials

M/s India Convention and Culture Centre Pvt. Ltd. Vs ITO (ITAT Delhi)

Valuation of the shares should be made on the basis of various factors and not merely on the basis of financials and the substantiation of the fair market value on the basis of the valuation done by the assessee simply cannot be rejected where the assessee has demonstrated with evidence that the fair market value of the asset is much more...

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CIT(E) cannot examine application of income while granting Registration U/s. 12AA

Mata Parvati Educational & Innovative Society Vs CIT (E) (ITAT Delhi)

Where registration of the Trust does not involve inquiry into the actual activities or application of the funds etc., particularly when there was nothing on record to make out that the object of the Trust or activities of the Trust were not genuine, therefore, CIT(E) had no ground to decline the registration under section 12AA....

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After conclusion of proceedings u/s 147 AO cannot take aid of Exp. 3 to Section 147 to make any addition

M/s JDC Traders Pvt. Ltd. Vs DCIT (ITAT Delhi)

M/s JDC Traders Pvt. Ltd. Vs DCIT (ITAT Delhi) A careful reading of Section 147 clearly shows that it empowers the learned AO to assess or re-assess the income in respect of any issue which had escaped the assessment irrespective of the fact that whether such aspect was adverted to in respect of the reasons […]...

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Addition for outstanding loan repaid by assessee subsequently was unjustified

ITO Vs Habitat Infrastructure Ltd. (ITAT Delhi)

Since the unaccounted money as alleged by the AO was the loan, which was repaid subsequently by assessee, addition made on account of unverifiable unsecured loans was unjustified....

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Reassessment not valid if assessee’s objections to reasons for reopening not disposed

Nimitaya Hotel & Resorts Ltd. Vs ACIT (ITAT Delhi)

Not passing a speaking order rejecting the objections of assessee to reopening of assessment but passing an order under section 147 making the additions based on reasons recorded had caused serious prejudice to interest of assessee. Thus, reopening had not been done in accordance with the law by AO and, therefore, reassessment order was s...

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Expense to get finance for normal business operations was revenue expense

DCIT Vs. Indus Towers Ltd. (ITAT Delhi)

The expense incurred for getting the finance for normal business operations does not provide any enduring benefit to the assessee as such, the one-time loan processing fees was revenue expenditure allowable to assessee....

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Satellite transmission services provided by USA based company in India cannot be taxed as Royalty

Intelsat Corporation Vs DCIT (ITAT Delhi)

ITAT held that Satellite transmission services provided by USA based company in India could not be brought to tax by treating the same as royalty income and amendment to the Income Tax Act, 1961 with a retrospective or prospective effect, cannot be read in a manner so as to extend the operation to the terms of international treaty....

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Addition for undisclosed stock not justified for mere difference in closing stock valuation

ACIT Vs National Cable Industries (ITAT Delhi)

Addition on account of undisclosed stock/ production is not justified where no physical discrepancy was found/detected by the survey team and excess value of stock was merely because of difference in valuation of closing stock...

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